The Croatian budget deficit, expressed as a share of gross domestic product (GDP), was slightly above the European average in the second quarter, breaching the prescribed ‘ceiling’ of three percent, preliminary data from Eurostat showed on Tuesday.
At the level of the 20-member eurozone, the seasonally adjusted budget deficit expressed as a share of GDP was three percent in the second quarter, the same as in the previous three months, remaining at the lowest level since the summer of 2022, calculated by the European statistical office.
At the EU level, it was 3.1 percent, which is 0.2 percentage points higher than in the previous three months, as shown in the tables.
Public spending in the area of the common European currency increased in the second quarter, according to seasonally adjusted data, to 49.2 percent of GDP, up from 48.8 percent in the first three months, with an increase in expenditure of about 25 billion euros.
At the EU level, it increased from 48.5 percent to 48.9 percent of GDP, reflecting an increase in expenditure of about 34 billion euros.
Budget revenue in the eurozone also increased in the second quarter, according to seasonally adjusted data, by about 25 billion euros compared to the previous three months. Its share in GDP was 46.2 percent, which is 0.4 percentage points higher than in the previous three months.
At the Union level, it increased by about 22 billion euros, and its share in GDP was 45.7 percent, which is 0.1 percentage points higher than in the previous quarter.
Seven countries with a surplus
According to seasonally adjusted data available to Eurostat, Poland had the largest budget deficit expressed as a share of GDP in the second quarter, at 8.1 percent.
It is followed by Romania with a deficit of 7.1 percent of GDP. Close behind are France and Slovakia, where it was 5.5 percent, and Finland with a deficit of 5.4 percent.
Croatia recorded a deficit of 3.4 percent of GDP in the second quarter of this year, according to Eurostat’s report, which means it breached the prescribed ceiling of three percent of GDP for the first time since the spring of the pandemic in 2021. In the first quarter, it was 1.2 percent of GDP.
The smallest share of deficit in GDP was recorded by Latvia and Sweden, at 1.3 percent, and Lithuania, where it was 1.4 percent. However, seven countries recorded a budget surplus, with the largest being in Cyprus, where it reached 4.6 percent of GDP.
They are followed by Denmark and Ireland, with surpluses of 3.3 and 3.1 percent of GDP, respectively. Close behind are Portugal and Greece, with surpluses of 2.6 and 1.3 percent, and the Netherlands and Luxembourg, where the surplus was 0.9 and 0.5 percent, as shown in the tables.
Eurostat did not have seasonally adjusted data for Italy, according to the report.
